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Commerce Department lends an EAR (Part 744, I believe) for Military End Users

FOR IMMEDIATE RELEASE 
Monday, December 21, 2020

News Media Contact:
Office of Public Affairs, 202-482-4883

Commerce Department Will Publish the First Military End User List
Naming More Than 100 Chinese and Russian Companies

WASHINGTON – The Bureau of Industry and Security (BIS) will amend the Export Administration Regulations (EAR) by adding a new ‘Military End User’ (MEU) List, as well as the first tranche of 103 entities, which includes 58 Chinese and 45 Russian companies. The U.S. Government has determined that these companies are ‘military end users’ for purposes of the ‘military end user’ control in the EAR that applies to specified items for exports, reexports, or transfers (in-country) to the China, Russia, and Venezuela when such items are destined for a prohibited ‘military end user.’

“This action establishes a new process to designate military end users on the MEU List to assist exporters in screening their customers for military end users,” said Commerce Secretary Wilbur Ross.  “The Department recognizes the importance of leveraging its partnerships with U.S. and global companies to combat efforts by China and Russia to divert U.S. technology for their destabilizing military programs, including by highlighting red flag indicators such as those related to Communist Chinese military companies identified by the Department of Defense.”

The MEU List informs exporters, reexporters, and transferors that a license will be required to export, reexport, or transfer (in-country) designated items to listed entities. The U.S. Government has determined that these entities represent an unacceptable risk of use in or diversion to a ‘military end use’ or ‘military end user’ in China, Russia, or Venezuela.

Commerce is taking this action, which is scheduled to go on public display at the Federal Register on December 22, to respond to requests received from the public to identify specific ‘military end users’ by name and address in the regulations. The MEU List supports the export community by identifying military end users known to the U.S. Government, improving the effectiveness of military end-use and military end-user controls.

Importantly, this is a non-exhaustive list, and does not imply that other parties not included on the list are exempt from regulatory prohibitions. For example, parties not listed on the MEU List but included on the Department of Defense’s Section 1237 list of the National Defense Authorization Act would raise a Red Flag under the EAR and require additional due diligence by exporters, reexporters, or transferors.

While the initial MEU list includes 103 companies, additional parties may be added or deleted from the MEU List pursuant to a determination made by the End-User Review Committee, the interagency body composed of Commerce, and the Departments of Defense, Energy, State, and, where appropriate, the Treasury.

This final rule will add the following 103 entities to the MEU List:

China

  • Academy of Aerospace Solid Propulsion Technology (AASPT);                      
  • The following eight subordinate institutions of Aero-Engine Company of China: AECC Aero Science & Technology Co. Ltd.; AECC Aviation Power Co. Ltd.; AECC Beijing Institute of Aeronautical. Materials; AECC China Gas Turbine Establishment; AECC Commercial Aircraft Engine Co. Ltd.; AECC Harbin Dongan Engine Co., Ltd.; AECC Shenyang Liming Aero Engine Co., Ltd.; and AECC South Industry Company Limited;                                          
  • Anhui Yingliu Hangyuan Power;                                                  
  • The following seven subordinate institutions of Aviation Industry Corporation of China:
    AVIC Aircraft Co. Ltd.; AVIC Chengdu Aircraft Industrial (GROUP) Co., Ltd.; AVIC Flight Automatic Control Research Institute (FACRI); AVIC General Aircraft Huanan Industry Co. Ltd.; AVIC General Aircraft Zhejiang Institute Co., Ltd.; AVIC International Holding Corporation; AVIC Leihua Electronic Technology Research Institute (LETRI);
  • Baimtec Material Co., Ltd.;                                                    
  • Beijing Aero Lever Precision Ltd.;                                              
  • Beijing Ander Tech. Co., Ltd.;                                                  
  • Beijing Guang Ming Electronics Co., Ltd.;                                        
  • Beijing Siyuan Electronic Co., Ltd.;                                            
  • CAST Xi’an Spaceflight Engine Factory;                                        
  • Chengdu Holy Aviation Science & Tech;                                              
  • China Aviation Ind. Std. Parts;                                                        
  • CSSC Xijiang Shipbuilding Co., Ltd.;                                              
  • Elink Electronic Technology Co., Ltd.;                                          
  • Fly Raise International Limited;                                                
  • Fuhua Precision Man. Co.;                                                        
  • Government Flying Service;                                                      
  • Guangzhou Hangxin Aviation Technology Co., Ltd.;                              
  • Guizhou Aviation Tech. Dev. Nat.;                                              
  • Guizhou Liyang Intl Manufacturing Co., Ltd.;                                      
  • Hafei Aviation Industry Co., Ltd. (HAFEI);                                      
  • Hangzhou Bearing Test & Research Center Co., Ltd.;                              
  • Harbin General Aircraft Industry Co., Ltd.;
  • Henan Aerospace Precision Mach;                                                  
  • Hunan South General Aviation Engine Co., Ltd.;                                  
  • Hutchison Optel Telecom Technology Co., Ltd.;                                  
  • Jiangsu Meilong Aviation Components Co.;                                      
  • Jiatai Aircraft Equipment Co., Ltd.;                                            
  • Jincheng Group Imp & Exp. Co., Ltd.;                                              
  • Laboratory of Toxicant Analysis, Institute of Pharmacology and Toxicology;      
  • Molecular Devices Shanghai Corporation;                                        
  • Nanjing Engineering Institute of Aircraft Systems (NEIAS);                                          
  • National Satellite Meteorological Bureau;                                      
  • Second Institute of Oceanography, Ministry of Natural Resources;                
  • Shaanxi Aero Electric Co., Ltd.;                                                
  • Shaanxi Aircaft Industry Co., Ltd.;                                                
  • Shanghai Aerospace Equip. Man.;                                                
  • Shanghai Aircraft Design and Research Institute;                                
  • Shanghai Aircraft Manufacturing Co., Ltd. (SAMC);                                
  • Shanghai Tianlang Electronic Science Co., Ltd.;                                
  • Shenyang Academy of Instrumentation Science Co., Ltd.;                          
  • Shenyang Aircraft Corporation;                                                  
  • Shenyang Xizi Aviation Industry Co., Ltd.;                                      
  • Sichuan Hangte Aviation Tech. Co., Ltd.;                                        
  • Star Tech Aviation Co., Ltd.;                                                    
  • Sumec Instruments Equipment Co., Ltd.;                                          
  • Suzhou Eric Mechanics and Electronics Co., Ltd.;                                  
  • Wuxi Hyatech Co., Ltd.;                                                        
  • Wuxi Paike New Mat. Tech. Co., Ltd.;                                            
  • Wuxi Turbine Blade Co. Ltd.;                                                      
  • Xac Group Aviation Electronics Import & Export Co. Ltd.;                          
  • XAIC Tech (Xi’an) Industrial Co., Ltd.;                                          
  • Xian Aero-Engine Controls Co., Ltd.;                                            
  • Xian Aircraft Industrial Company Limited;                                    
  • Xi’an Xae Flying Aviation Manufacturing Technology Co., Ltd.;                    
  • Xian Xr Aero- Components Co., Ltd.;                                                
  • Yibin Sanjiang Machine Co., Ltd.; and                                              
  • Zhejiang Perfect New Material Co., Ltd.

Russia

  • Admiralty Shipyard JSC;
  • Aleksandrov Scientific Research Technological Institute NITI;
  • Argut OOO;                                                                    
  • Communication center of the Ministry of Defense;                                
  • Federal Research Center Boreskov Institute of Catalysis;                      
  • Federal State Budgetary Enterprise of the Administration of the President of Russia;
  • Federal State Budgetary Enterprise Special Flight Unit Rossiya of the Administration of the President of Russia;
  • Federal State Unitary Enterprise Dukhov Automatics Research Institute (VNIIA);  
  • Foreign Intelligence Service (SVR);
  • Forensic Center of Nizhniy Novgorod Region Main Directorate of the Ministry of Interior Affairs;
  • Irkut Co.;                                                            
  • Irkut Research and Production Corporation Public Joint Stock Company;          
  • Joint Stock Company Scientific Research Institute of Computing Machinery;      
  • JSC Central Research Institute of Machine Building (JSC TsNIIMash);
  • JSC Rocket and Space Centre – Progress;
  • Kamensk-Uralsky Metallurgical Works J.S. Co.;
  • Kazan Helicopter Plant PJSC;                                                    
  • Komsomolsk-na-Amur Aviation Production Organization (KNAAPO);
  • Korporatsiya Vsmpo Avisma OAO;                                                  
  • Ministry of Defence RF;                                                          
  • Molot Oruzhie;
  • NPO High Precision Systems JSC;
  • NPO Splav JSC;
  • Oboronprom OJSC;
  • PJSC Beriev Aircraft Company;
  • PJSC Irkut Corporation;                                                        
  • PJSC Kazan Helicopters;                                                        
  • POLYUS Research Institute of M.F. Stelmakh Joint Stock Company;                
  • Promtech-Dubna, JSC;                                                          
  • Public Joint Stock Company United Aircraft Corporation;                        
  • Radiotechnical and Information Systems (RTI) Concern;
  • Rapart Services LLC;                                                            
  • Rosoboronexport OJSC (ROE);
  • Rostec (Russian Technologies State Corporation);
  • Rostekh – Azimuth;                                                            
  • Russian Aircraft Corporation MiG;
  • Russian Helicopters JSC;
  • Sukhoi Aviation JSC;
  • Sukhoi Civil Aircraft;                                                        
  • Tactical Missiles Corporation JSC;
  • Tupolev JSC;
  • UEC-Saturn;
  • United Aircraft Corporation;
  • United Engine Corporation; and
  • United Instrument Manufacturing Corporation.

For more information, visit www.bis.doc.gov.

Categories: Commerce Department Updates Export Administrastion Act/Regulations (EAA/EAR) Export Control Military End Users

eric9to5

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